Similar to NORECOVERY except that the database will accept read only connections. To do this any uncommitted transactions in the backup will be rolled back and stored in a transaction undo file (tuf.) Whilst users are running queries against the database no further restores can continue until all queries are complete (though this is not the case with log shipping.) When the next restore occurs, those uncommitted transactions in the tuf file will be rolled forward and the next log is restored.
Diving into STANDBY mode was quite helpful. I’ve never needed to restore a database into standby mode, but could see it being useful for bringing back deleted records.